[ET Net News Agency, 13 January 2020] J.P. Morgan raised its target price for Sunac
China (01918) to HK$55 from HK$49 and maintained its "overweight" rating.
The research house said Sunac's HK$8bn placement should not come entirely as a surprise
given the company's track record and recent share price strength.
JPM now expects Sunac net gearing to be at around 110% by end-2020, and below 100% by
end-2021. It expects Sunac's 2019 core net profit to be Rmb26.4bn, with a 16% CAGR into
2021. This is supported by Rmb650bn of unrecognized sales. (KL)